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TCLT as a tax-deductible cost

Can the tax on civil law transactions (TCLT, sometimes also functioning as stamp duty) be a tax-deductible cost? When formulating the answer to such a question, as is very often the case in taxation, the answer is – it depends. General principles According to Article 15 sec. 1 of the Polish CIT Act, tax-deductible costs

Border Carbon Tax adopted! From 1st October, a series of new obligations for entrepreneurs.

On 10th May 2023, the Carbon Border Adjustment Mechanism (CBAM) Regulation was adopted. This means that as of 1st October 2023, new quarterly reporting obligations await entrepreneurs related to the need to determine the level of emissions associated with the production and transportation of imported products listed in the Regulation, or to determine their origin. 

Sponsorship relief on sports activities – what to watch out for?

“The Polish Deal” introduced an additional relief in income taxes (PIT and CIT), called “sponsorship” or “CSR” relief (Article 18ee of the Polish CIT Act and Article 26ha of the Polish CIT Act). It consists in the possibility of an additional deduction from the tax base of, among other things, 50% of tax-deductible expenses incurred

  • Published in CIT

Legislation and practice – April in taxes

We present below a short summary of the most important changes in tax law and tax practice in April: Legislation A draft of a new Decree on exempting certain types of vertical agreements from the prohibition of restrictive agreements has been published on the pages of the Government Legislation Center – it is based on

Acquisition of rights to a foreign webinar and VAT

The development of digital reality makes it increasingly common for Polish VAT taxpayers to acquire rights to webinars or other materials of a similar nature prepared abroad. This applies to acquisitions from taxpayers based in countries other than Poland – whether located in the EU or outside the EU. What is involved here is a

  • Published in VAT

Changes in VAT and family foundation regulations

We would like to inform you that during last Friday’s session of the Sejm, significant changes were made to the tax law. A law was passed amending the VAT Law – the so-called “SLIM VAT 3” package. Among other things, the regulations provide for: raising the sales limit for a “small taxpayer” to EUR 2

Intermediary services (agent) are not subject to WHT in Poland

The applicant is a Polish company that plans to enter into an agency agreement with a company in India (agent). The agent will act as an intermediary for the sale of the applicant’s products on the Indian market. His tasks will include representing the company, attending meetings, making offers on behalf of the company, answering

  • Published in CIT

Legislation and practice – March in taxes

We present below a short summary of the most important changes in tax law and tax practice in March: Legislation The Decree amending the Decree on tax information was published in the “Journal of Laws” (item 422) – mainly a change in the deadline for submitting ORD-U information from the end of March to the

Notional interest deduction also with the payment of profit from previous years

Polish CIT regulations have provided tax preferences for entities accumulating profits for several years. This instrument is the recognition of the amount of “hypothetical” interest on own financing (notional interest deduction) as tax deductible costs. According to Article 15cb sec. 1 point 2 of the Polish CIT Act the tax deductible cost is also the

  • Published in CIT

Lease agreement and MDR – a never-ending story?

Although some time has passed since the introduction of the MDR regulations, some taxpayers are still surprised to receive information from lessors that: they reported the leasing contract as a standardized tax scheme, therefore they included the concluded agreement in the MDR-4 quarterly reporting, which is why it is the beneficiary who should consider whether

  • Published in MDR

ORD-U and TPR

In principle, entities that prepare and submit TPR information do not have to submit ORD-U declarations. There is an exception to this rule – it applies to taxpayers who make transactions with “tax heaven” entities (Article 11k sec. 2a of the Polish CIT Act). This results from the regulation of Article 82 § 1c of

  • Published in CIT

WHT – an interesting ruling of the Supreme Administrative Court

The portion of the purchase price of the goods identified as payable under the license is subject to WHT. The applicant (company) is a distributor of cosmetics. It purchases goods from a related entity (a foreign establishment of a foreign company). The contract concluded between the applicant and the plant contains a provision according to

  • Published in CIT

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